ICT industry leaders have urged the government to provide policy support aimed at achieving self-reliance in this sector.
The business leaders from the information and communication technology (ICT) sector also expressed gratitude and thanks to the Prime Minister for extending the tax-exemption period by three more years in the proposed budget for FY 2024-25.
The Bangladesh Association of Software and Information Services (BASIS), Bangladesh Association of Contact Center & Outsourcing (BACCO), Internet Service Provider Association of Bangladesh (ISPAB) and E-Commerce Association of Bangladesh (E-CAB) jointly organised a press conference at BASIS Auditorium in Dhaka on Sunday to give their reaction to the proposed budget.
BASIS President Russell T. Ahmed, BACCO President Wahid Sharif, ISPAB President Md Emdadul Hoque and E-CAB Vice President Syeda Ambareen Reza spoke at the press conference.
BASIS president Russell T. Ahmed said, "This tax exemption will not only contribute to the development of the ICT sector but also play a crucial role in building a Smart Bangladesh, impacting various fields such as education, healthcare, agriculture, banking, and export-oriented manufacturing."
"This is closely linked with the Fourth Industrial Revolution and will spur technological development and innovation across multiple sectors of a knowledge-based and cashless economy," he stated.
The BASIS president also pointed out that currently, only 10 per cent of the $20 million cloud service and web-hosting market is held by local entrepreneurs.
He warned that bringing these services under taxation could discourage domestic entrepreneurs. He emphasised the need to exempt cloud services and web hosting from taxes to support the growth of local ICT and service companies.
He also called for reconsideration of the imposition of a 1.0 per cent import duty on capital equipment for high-tech park investors, urging the government to maintain the current duty-free status.
BACCO President Wahid Sharif highlighted that the tax exemption in the ICT sector would significantly contribute to technological advancement, innovation and the creation of new entrepreneurs.
He noted its positive impact on various export-oriented industries, education, healthcare, and banking, which would lead to job creation and substantial foreign currency earnings, thereby boosting the economy.
ISPAB president Md Emdadul Hoque expressed concerns regarding the proposed budget.
Despite directives from the Prime Minister to enhance the ICT service sector, the failure to include all ISP services under the IT-enabled services (ITES) category, coupled with a 10 per cent advance income tax (AIT) on broadband internet service providers and a 37 per cent VAT and duty on ONU and OLT equipment, poses significant challenges, he added.
Syeda Ambareen Reza, vice president of E-CAB, said that in building the Smart Bangladesh, the existing benefits of IT and ITES sector should be maintained and the supporting sector should also be developed because sometimes the growth of the main industry is hindered due to the support industry.
One of the supporting sectors of the digital industry is website hosting and cloud services. Currently, this sector of the country is still dependent on foreign services, she added.
sajibur@gmail.com